No More Fiscal Stimulus?

‘Given how big [UK fiscal] deficits are, I think it would be sensible to be cautious about going further in using discretionary measures to expand the size of those deficits.

The level of the fiscal position in the UK is not one that would say: ‘Well, why don’t we just engage in another significant round of fiscal expansion?’

Mervyn King giving evidence to the Treasury Select Committee has cast serious doubts on Gordon Brown’s preferred remedy for the UK economy. Brown might as well cancel the G20 summit and save the taxpayers millions earmarked for the policing of this event!